Investors' focus has locked in on semiconductor stocks following news of a potential "phase one" trade deal between the U.S. and China. Many chipmakers do production work in China and/or distribute products to Chinese companies, so the industry has suffered a nasty case of whiplash throughout the two or so years of the two countries' tariff spat.
The upside is that the volatility still is coming out on their side. The iShares PHLX Semiconductor ETF (SOXX) has soared nearly 40% year-to-date, doubling the already better-than-average returns for the S&P 500. While trade enthusiasm has helped, the industry also is recovering from inflated inventory levels that have weighed heavily on the space.
SunTrust Robinson Humphrey analyst William Stein wrote in October, "Looking through any tactical correction (due to tariffs), the big move is still to the upside. We believe patient investors will be rewarded for being long semis." And Goldman Sachs' Toshiya Hari wrote in July that chipmaking equipment companies' fundamentals could improve "sooner than previously expected."
Here are five semiconductor stocks to buy to take advantage of an improving outlook for the industry. We took advantage of TipRanks' Stock Screener tool to pinpoint five chip stocks that have recently accumulated bullish sentiment from Wall Street analysts. Let's take a look.SEE ALSO: 12 Tech Stocks That Wall Street Loves the Most